Opendoor Technologies It attracted a sudden interest among retailers who were obsessed with Reddit. He tripled the stock price in a few days, but on Tuesday the speculative run ran out of steam.
Online real estate startups have slid more than 10% of their shares on Tuesday after a 24% of the day surged. Over 42% jumped in Monday’s session after multiple transactions were suspended due to volatility.
Opendoor, one day
The meme cohort appeared to be focused Colesits shares rose almost 38% on Tuesday. According to Factset, half of Kohl’s float stocks are sold short.
Opendoor, which traded mostly for less than $1 this year, reached a peak of $4.97 during Monday’s session, finishing at $3.21 per day. That meteor rally rose 400% in July alone, even at Pullback on Tuesday.
Opendoor Technologies in a Month
The ticker $open is heavily cited in Wallstreetbets, the online forum behind the infamous GameStop Mania in 2021. Opendoor investor Eric Jackson of Hedge Fund Manager began to promote the stock, and then gained traction on the internet.
“Hodlthe ($open) door” reads one post.
Trading volume exploded on Monday with 19 billion Opendoor stocks trading over 1,700% of the three-month average, according to Factset.
Approximately 22% of Opendoor’s available shares are sold shortly. This means that a short caver may be played during this run. Short sellers tend to buy back stocks to reduce losses when short targets suddenly gather, and purchases can boost stocks even more.
The growing number of options traded by name also strengthened the gathering. The bespoke investment group called Opendor “posterchild” because of the recent wave of optimism in the options market.
“The stock has grown 500% over three weeks, and over that period, total call-open interest has tripled.
Bespoke said in a note to client. “The surge in call purchases has boosted extreme movements with a small slice of the market, even with most other stocks declining.”
When Opendoor was published in 2020 through a special purpose acquisition company, it was riding on wider profits driven by the waves of Spack and low interest rates and the market euphoria of the Covid era. Opendoor’s business used technology to buy and sell homes and pocket profits.
